Adeia Announces Third Quarter 2024 Financial Results
Adeia (NASDAQ: ADEA) reported Q3 2024 financial results with revenue of $86.1 million and GAAP net income of $19.3 million. The company signed 7 deals across multiple verticals including consumer electronics, Pay-TV, OTT and semiconductor. Notable renewals include agreements with LG Electronics, VIZIO, and Liberty Global. The Board increased share repurchase authorization up to $200 million. The company filed patent infringement litigation against Disney, including Hulu and ESPN. Adeia adjusted its full-year 2024 revenue outlook to $370.0-400.0 million with adjusted EBITDA guidance of $228.0-254.0 million.
Adeia (NASDAQ: ADEA) ha riportato i risultati finanziari del terzo trimestre del 2024 con ricavi di 86,1 milioni di dollari e un utile netto GAAP di 19,3 milioni di dollari. L'azienda ha firmato 7 accordi in diversi settori tra cui elettronica di consumo, Pay-TV, OTT e semiconduttori. Rinnovi significativi includono contratti con LG Electronics, VIZIO e Liberty Global. Il Consiglio ha aumentato l'autorizzazione al riacquisto di azioni fino a 200 milioni di dollari. L'azienda ha intentato una causa per violazione di brevetto contro Disney, inclusi Hulu ed ESPN. Adeia ha rivisto le previsioni di fatturato per l'intero anno 2024 a 370,0-400,0 milioni di dollari con una guida EBITDA rettificato di 228,0-254,0 milioni di dollari.
Adeia (NASDAQ: ADEA) informó los resultados financieros del tercer trimestre de 2024 con ingresos de 86,1 millones de dólares y una ganancia neta GAAP de 19,3 millones de dólares. La compañía firmó 7 acuerdos en múltiples sectores, incluidos electrónica de consumo, Pay-TV, OTT y semiconductores. Renovaciones notables incluyen contratos con LG Electronics, VIZIO y Liberty Global. La Junta aumentó la autorización de recompra de acciones hasta 200 millones de dólares. La empresa presentó litigios por infracción de patente contra Disney, que incluye Hulu y ESPN. Adeia ajustó su perspectiva de ingresos para todo el año 2024 a 370,0-400,0 millones de dólares con una guía ajustada de EBITDA de 228,0-254,0 millones de dólares.
Adeia (NASDAQ: ADEA)는 2024년 3분기 재무 결과를 발표하며 매출 8610만 달러 및 GAAP 기준 순이익 1930만 달러를 기록했다고 보고했습니다. 이 회사는 소비자 전자기기, Pay-TV, OTT 및 반도체를 포함한 여러 분야에서 7건의 계약을 체결했습니다. 주목할 만한 갱신 계약에는 LG 전자, VIZIO 및 Liberty Global과의 협정이 포함됩니다. 이사회는 주식 매입 권한을 2억 달러로 확대했습니다. 이 회사는 Disney, Hulu 및 ESPN에 대한 특허 침해 소송을 제기했습니다. Adeia는 2024년 전체 매출 전망을 3억 7천만~4억 달러, 조정된 EBITDA 가이드를 2억 2800만~2억 5400만 달러로 조정했습니다.
Adeia (NASDAQ: ADEA) a annoncé les résultats financiers du troisième trimestre 2024 avec un chiffre d'affaires de 86,1 millions de dollars et un bénéfice net GAAP de 19,3 millions de dollars. L'entreprise a signé 7 accords dans plusieurs secteurs, y compris l'électronique grand public, la Pay-TV, l'OTT et les semi-conducteurs. Parmi les renouvellements notables figurent des accords avec LG Electronics, VIZIO et Liberty Global. Le Conseil a augmenté l'autorisation de rachat d'actions jusqu'à 200 millions de dollars. L'entreprise a déposé une plainte pour violation de brevet contre Disney, incluant Hulu et ESPN. Adeia a ajusté ses prévisions de chiffre d'affaires pour l'année 2024 à 370,0-400,0 millions de dollars, avec une orientation EBITDA ajustée de 228,0-254,0 millions de dollars.
Adeia (NASDAQ: ADEA) hat die finanziellen Ergebnisse für das 3. Quartal 2024 veröffentlicht, mit einem Umsatz von 86,1 Millionen US-Dollar und einem GAAP-Nettogewinn von 19,3 Millionen US-Dollar. Das Unternehmen hat 7 Verträge in verschiedenen Bereichen unterzeichnet, darunter Unterhaltungselektronik, Pay-TV, OTT und Halbleiter. Erwähnenswerte Verlängerungen umfassen Vereinbarungen mit LG Electronics, VIZIO und Liberty Global. Der Vorstand hat die Genehmigung für den Aktienrückkauf auf bis zu 200 Millionen US-Dollar erhöht. Das Unternehmen hat Klage wegen Patentverletzungen gegen Disney, einschließlich Hulu und ESPN, eingereicht. Adeia hat seine Umsatzprognose für das gesamte Jahr 2024 auf 370,0-400,0 Millionen US-Dollar angehoben, mit einer angepassten EBITDA-Prognose von 228,0-254,0 Millionen US-Dollar.
- Revenue of $86.1 million with strong EBITDA margin of 60%
- Secured 7 new deals across multiple verticals
- Board increased share repurchase authorization to $200 million
- Signed renewals with major companies including LG Electronics, VIZIO, and Liberty Global
- Made $12.0 million accelerated debt repayment
- Revenue declined from $87.4 million in Q2 2024
- Lowered full-year 2024 revenue guidance from $380-420M to $370-400M
- Reduced adjusted EBITDA guidance from $237.5-267.5M to $228-254M
Insights
Q3 results show
However, the lowered full-year revenue guidance (
The litigation against Disney, Hulu and ESPN represents a significant strategic move to protect Adeia's intellectual property portfolio. With over 100 license agreements since 2021, this legal action indicates failed negotiations with a major potential licensee. The company's track record of successful licensing deals strengthens its position in this litigation.
The timing of this lawsuit, combined with new agreements in e-commerce and renewals across multiple verticals, suggests a comprehensive strategy to monetize IP across diverse markets. This approach helps mitigate risk through portfolio diversification while asserting the company's IP rights against major market players.
Signed 7 deals across multiple verticals in the third quarter
Board increased share repurchase authorization up to
Filed patent infringement litigation against Disney
Signed a new multi-year e-commerce license agreement with a leading luxury retailer
SAN JOSE, Calif., Nov. 07, 2024 (GLOBE NEWSWIRE) -- Adeia Inc. (Nasdaq: ADEA) (the “Company” or “Adeia”) today announced financial results for the third quarter ended September 30, 2024.
“In the third quarter, we signed 7 deals in multiple verticals including consumer electronics, Pay-TV, OTT and semiconductor. Our financial results remain solid as we delivered
Third Quarter Financial Highlights
- Revenue was
$86.1 million as compared to$87.4 million in the second quarter of 2024 - GAAP diluted earnings per share (EPS) was
$0.17 and non-GAAP diluted EPS was$0.27 - GAAP net income was
$19.3 million and adjusted EBITDA was$51.3 million - Cash flows from operations was
$14.3 million - Made accelerated debt repayment of
$12.0 million on our term loan during the quarter
Business Highlights
- Signed 7 deals across multiple verticals including consumer electronics, Pay-TV, OTT and semiconductor
- LG Electronics, a global provider of consumer electronics, signed a multi-year renewal for access to our media portfolio
- VIZIO, a leading smart TV brand, signed a multi-year renewal for access to our media portfolio
- Liberty Global, a European Pay-TV operator, signed a multi-year renewal for access to our media portfolio
- Signed additional renewals with a provider of streaming services and devices, a provider of online programming guides, and an OTT provider in Korea for access to our media portfolio, and signed an agreement with an existing semiconductor customer for advanced hybrid bonding engineering support
- Filed litigation against The Walt Disney Company and certain of its subsidiaries, including Hulu and ESPN
- Signed a new multi-year agreement with a leading luxury retailer with a growing e-commerce presence
Capital Allocation
In October, the Board of Directors approved an increase of the existing share repurchase authorization up to a total of
During the quarter, the Company made a
On September 16, 2024, the Company distributed
On October 23, 2024, the Board of Directors declared a dividend of
Financial Outlook
The Company is adjusting and narrowing its full-year 2024 outlook as follows:
Category (in millions, except for tax rate) | 2024 GAAP Outlook | 2024 Non-GAAP Outlook | ||||||
Updated | Prior | Updated | Prior | |||||
Revenue | ||||||||
Operating expenses(1) | ||||||||
Interest expense | ||||||||
Other income | ||||||||
Tax rate | ||||||||
Net income(2) | ||||||||
Adjusted EBITDA(2) | N/A | N/A | ||||||
Diluted shares outstanding | 113.0 − 114.0 | 113.0 − 114.0 | 113.0 − 114.0 | 113.0 − 114.0 | ||||
(1) See tables for reconciliation of GAAP to non-GAAP operating expenses
(2) See tables for reconciliation of GAAP net income to (i) non-GAAP net income and (ii) adjusted earnings before interest expense, income taxes, depreciation and amortization (adjusted EBITDA)
Conference Call Information
The Company will hold its third quarter 2024 earnings conference call at 2:00 PM Pacific Time (5:00 PM Eastern Time) on Thursday, November 7, 2024. To access the call in the U.S., please dial +1 (888) 660-6411, and for international callers, dial +1 (929) 203-0849. All participants should dial in 15 minutes prior to the start of the conference call. The Company also suggests utilizing the webcast link to access the live call and the replay at Q3 2024 Earnings Call Webcast.
Safe Harbor Statement
This press release contains “forward-looking statements” within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on information available to the Company as of the date hereof, as well as the Company’s current expectations, assumptions, estimates and projections that involve risks and uncertainties. In this context, forward-looking statements often address expected future business, financial performance and financial condition, and often contain words such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “could,” “seek,” “see,” “will,” “may,” “would,” “might,” “potentially,” “estimate,” “continue,” “target,” similar expressions or the negatives of these words or other comparable terminology that convey uncertainty of future events or outcomes. All forward-looking statements by their nature address matters that involve risks and uncertainties, many of which are beyond the Company’s control, and are not guarantees of future results. Forward-looking statements are subject to risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed in any forward-looking statements. Accordingly, there are or will be important factors that could cause actual results to differ materially from those indicated in such statements and, therefore, you should not place undue reliance on any such statements and caution must be exercised in relying on forward-looking statements. Important risk factors that may cause such a difference include, but are not limited to: the Company’s ability to implement its business strategy; the Company’s ability to enter into new and renewal license agreements with customers on favorable terms; the Company’s ability to retain and hire key personnel; uncertainty as to the long-term value of the Company’s common stock; legislative, regulatory and economic developments affecting the Company’s business; general economic and market developments and conditions; the Company’s ability to grow and expand its patent portfolios; changes in technology and development of new technology in the industries in which in which the Company operates; the evolving legal, regulatory and tax regimes under which the Company operates; unforeseen liabilities and expenses; risks associated with the Company’s indebtedness; the Company’s ability to achieve the intended benefits of, and its ability to recognize the anticipated tax treatment of, the spin-off of its product business; unpredictability and severity of catastrophic events, including, but not limited to, acts of terrorism or outbreak of war or hostilities, natural disasters and future outbreaks or pandemics, each of which may have an adverse impact on the Company’s business, results of operations, and financial condition. These risks, as well as other risks associated with the Company’s business, are more fully discussed in the Company’s filings with the U.S. Securities and Exchange Commission (“SEC”), including the Company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. While the list of factors presented here is, and the list of factors presented in the Company’s filings with the SEC are, considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. Unlisted factors may present significant additional obstacles to the realization of forward-looking statements.
Causes of material differences in results as compared with those anticipated in the forward-looking statements could include, among other things, business disruption, operational problems, failure to complete licensing arrangements on anticipated terms and timeline, failure to prevail in litigation we may bring against third parties, financial loss, legal liability to third parties and similar risks, any of which could have a material adverse effect on the Company’s consolidated financial condition, results of operations, liquidity or trading price of common stock. The Company does not assume any obligation to publicly provide revisions or updates to any forward-looking statements, whether as a result of new information, future developments or otherwise, should circumstances change, except as otherwise required by securities and other applicable laws.
About Adeia Inc.
Adeia is a leading R&D and intellectual property (IP) licensing company that accelerates the adoption of innovative technologies in the media and semiconductor industries. Adeia’s fundamental innovations underpin technology solutions that are shaping and elevating the future of digital entertainment and electronics. Adeia’s IP portfolios power the connected devices that touch the lives of millions of people around the world every day as they live, work and play. For more, please visit www.adeia.com.
Non-GAAP Financial Measures
In addition to disclosing financial results calculated in accordance with U.S. Generally Accepted Accounting Principles (GAAP), the Company’s earnings release contains non-GAAP financial measures adjusted, where applicable, for either one-time or ongoing non-cash acquired intangibles amortization charges, costs related to actual or planned business combinations including transaction fees, integration costs, severance, facility closures, and retention bonuses, separation costs, all forms of stock-based compensation, loss on debt extinguishment, expensed debt refinancing costs, impairment of intangible assets, impact of certain foreign currency adjustments, discontinued operations and related tax effects. In addition, adjusted EBITDA adjusts for recurring charges of interest expense, income taxes, depreciation and amortization. Management believes that the non-GAAP measures used in this release provide investors with important perspectives on the Company’s ongoing business and financial performance and are helpful to provide investors with an understanding of our core operating results reflecting our normal business operations. The non-GAAP financial measures disclosed by the Company should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP. Our use of non-GAAP financial measures has certain limitations in that the non-GAAP financial measures we use may not be directly comparable to those reported by other companies. For example, the terms used in this press release, such as EBITDA margin, which is defined as EBITDA as a percentage of revenue, adjusted EBITDA, non-GAAP operating expenses, non-GAAP net income and non-GAAP diluted earnings per share (EPS) do not have a standardized meaning. Other companies may use the same or similarly named measures, but exclude different items, which may not provide investors with a comparable view of our performance in relation to other companies. We seek to compensate for the limitation of our non-GAAP presentation by providing a detailed reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measures in the tables attached hereto. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures. All financial data is presented on a GAAP basis except where the Company indicates its presentation is on a non-GAAP basis.
Set forth below are reconciliations of the Company’s reported and forecasted GAAP to non-GAAP financial metrics.
Investor Contact:
Chris Chaney
Vice President, Investor Relations
IR@adeia.com
– Tables Follow –
SOURCE: ADEIA INC.
ADEA
ADEIA INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share amounts) (unaudited) | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, 2024 | September 30, 2023 | September 30, 2024 | September 30, 2023 | ||||||||||||
Revenue | $ | 86,101 | $ | 101,397 | $ | 256,856 | $ | 301,921 | |||||||
Operating expenses: | |||||||||||||||
Research and development | 14,825 | 13,768 | 43,549 | 39,895 | |||||||||||
Selling, general and administrative | 26,903 | 21,921 | 75,549 | 71,177 | |||||||||||
Amortization expense | 13,600 | 23,386 | 56,787 | 70,725 | |||||||||||
Litigation expense | 2,652 | 2,205 | 9,844 | 7,161 | |||||||||||
Total operating expenses | 57,980 | 61,280 | 185,729 | 188,958 | |||||||||||
Operating income | 28,121 | 40,117 | 71,127 | 112,963 | |||||||||||
Interest expense | (12,758 | ) | (15,659 | ) | (40,229 | ) | (47,137 | ) | |||||||
Other income and expense, net | 1,431 | 1,486 | 4,259 | 4,723 | |||||||||||
Loss on debt extinguishment | — | — | (453 | ) | — | ||||||||||
Income before income taxes | 16,794 | 25,944 | 34,704 | 70,549 | |||||||||||
Provision for (benefit from) income taxes | (2,520 | ) | 1,712 | 6,109 | 15,877 | ||||||||||
Net income | $ | 19,314 | $ | 24,232 | $ | 28,595 | $ | 54,672 | |||||||
Net income per share: | |||||||||||||||
Basic | $ | 0.18 | $ | 0.23 | $ | 0.26 | $ | 0.51 | |||||||
Diluted | $ | 0.17 | $ | 0.21 | $ | 0.25 | $ | 0.48 | |||||||
Weighted average number of shares used in per share calculations: | |||||||||||||||
Basic | 109,035 | 106,902 | 108,491 | 106,322 | |||||||||||
Diluted | 113,124 | 112,929 | 112,881 | 112,765 | |||||||||||
ADEIA INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) (unaudited) | |||||||
September 30, | December 31, | ||||||
2024 | 2023 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 60,698 | $ | 54,560 | |||
Marketable securities | 28,486 | 29,012 | |||||
Accounts receivable, net | 43,948 | 39,651 | |||||
Unbilled contracts receivable | 101,593 | 74,919 | |||||
Other current assets | 9,985 | 7,700 | |||||
Total current assets | 244,710 | 205,842 | |||||
Long-term unbilled contracts receivable | 62,880 | 73,843 | |||||
Property and equipment, net | 6,473 | 6,971 | |||||
Operating lease right-of-use assets | 8,817 | 9,484 | |||||
Intangible assets, net | 297,361 | 347,172 | |||||
Goodwill | 313,660 | 313,660 | |||||
Long-term income tax receivable | 120,391 | 120,338 | |||||
Other long-term assets | 28,873 | 28,246 | |||||
Total assets | $ | 1,083,165 | $ | 1,105,556 | |||
LIABILITIES AND EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 7,717 | $ | 9,623 | |||
Accrued liabilities | 18,473 | 19,138 | |||||
Current portion of long-term debt, net | 24,732 | 66,145 | |||||
Deferred revenue | 20,576 | 7,132 | |||||
Total current liabilities | 71,498 | 102,038 | |||||
Deferred revenue, less current portion | 24,474 | 17,672 | |||||
Long-term debt, net | 499,692 | 519,550 | |||||
Noncurrent operating lease liabilities | 9,180 | 9,730 | |||||
Long-term income tax payable | 82,422 | 81,834 | |||||
Other long-term liabilities | 17,684 | 18,110 | |||||
Total liabilities | 704,950 | 748,934 | |||||
Commitments and contingencies | |||||||
Stockholders’ equity: | |||||||
Preferred stock | — | — | |||||
Common stock | 124 | 121 | |||||
Additional paid-in capital | 639,727 | 635,331 | |||||
Treasury stock at cost | (234,057 | ) | (222,497 | ) | |||
Accumulated other comprehensive loss | 151 | (8 | ) | ||||
Accumulated deficit | (27,730 | ) | (56,325 | ) | |||
Total stockholders’ equity | 378,215 | 356,622 | |||||
Total liabilities and equity | $ | 1,083,165 | $ | 1,105,556 | |||
ADEIA INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited) | |||||||
Nine Months Ended | |||||||
September 30, 2024 | September 30, 2023 | ||||||
Cash flows from operating activities: | |||||||
Net income | $ | 28,595 | $ | 54,672 | |||
Adjustments to reconcile net income to net cash from operating activities: | |||||||
Depreciation of property and equipment | 1,536 | 1,151 | |||||
Amortization of intangible assets | 56,787 | 70,725 | |||||
Stock-based compensation expense | 19,156 | 13,070 | |||||
Deferred income tax | (1,818 | ) | 2 | ||||
Loss on debt extinguishment | 453 | — | |||||
Amortization of debt issuance costs | 2,429 | 3,251 | |||||
Other | (1,421 | ) | 107 | ||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | (3,547 | ) | 13,728 | ||||
Unbilled contracts receivable | (15,711 | ) | (34,415 | ) | |||
Other assets | (481 | ) | 9,993 | ||||
Accounts payable | (170 | ) | 265 | ||||
Accrued and other liabilities | (1,053 | ) | (14,515 | ) | |||
Deferred revenue | 20,246 | (4,719 | ) | ||||
Net cash from operating activities | 105,001 | 113,315 | |||||
Cash flows from investing activities: | |||||||
Purchases of property and equipment | (1,274 | ) | (1,936 | ) | |||
Purchases of intangible assets | (8,476 | ) | (95 | ) | |||
Purchases of short-term investments | (25,094 | ) | (33,598 | ) | |||
Proceeds from maturities of investments | 26,450 | 3,800 | |||||
Net cash from investing activities | (8,394 | ) | (31,829 | ) | |||
Cash flows from financing activities: | |||||||
Dividends paid | (16,303 | ) | (15,979 | ) | |||
Repayment of debt | (64,153 | ) | (118,875 | ) | |||
Proceeds from employee stock purchase program and exercise of stock options | 1,547 | 1,172 | |||||
Repurchases of common stock for tax withholdings on equity awards | (11,560 | ) | (10,504 | ) | |||
Net cash from financing activities | (90,469 | ) | (144,186 | ) | |||
Net increase (decrease) in cash and cash equivalents | 6,138 | (62,700 | ) | ||||
Cash and cash equivalents at beginning of period | 54,560 | 114,555 | |||||
Cash and cash equivalents at end of period | $ | 60,698 | $ | 51,855 | |||
ADEIA INC. GAAP TO NON-GAAP RECONCILIATIONS (in thousands, except per share amounts) (unaudited) | |||||||||||||||
Net income | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, 2024 | September 30, 2023 | September 30, 2024 | September 30, 2023 | ||||||||||||
GAAP net income | $ | 19,314 | $ | 24,232 | $ | 28,595 | $ | 54,672 | |||||||
Adjustments to GAAP net income: | |||||||||||||||
Stock-based compensation expense: | |||||||||||||||
Research and development | 1,126 | 767 | 3,028 | 2,097 | |||||||||||
Selling, general and administrative | 6,293 | 4,107 | 16,128 | 10,973 | |||||||||||
Amortization expense | 13,600 | 23,386 | 56,787 | 70,725 | |||||||||||
Transaction costs recorded in selling, general and administrative | — | — | 1,255 | — | |||||||||||
Separation and other related costs recorded in selling, general and administrative (1) | 1,613 | 1,915 | 4,204 | 10,223 | |||||||||||
Severance and retention costs recorded in selling, general and administrative | — | — | — | 78 | |||||||||||
Total operating expenses adjustments | 22,632 | 30,175 | 81,402 | 94,096 | |||||||||||
Other income and expense, net | — | — | — | (302 | ) | ||||||||||
Loss on debt extinguishment | — | — | 453 | — | |||||||||||
Non-GAAP tax adjustment (2) | (11,588 | ) | (11,195 | ) | (20,699 | ) | (21,921 | ) | |||||||
Non-GAAP net income | $ | 30,358 | $ | 43,212 | $ | 89,751 | $ | 126,545 | |||||||
Diluted earnings per share | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, 2024 | September 30, 2023 | September 30, 2024 | September 30, 2023 | ||||||||||||
GAAP diluted earnings per share | $ | 0.17 | $ | 0.21 | $ | 0.25 | $ | 0.48 | |||||||
Adjustments to GAAP diluted earnings per share: | |||||||||||||||
Stock-based compensation expense: | |||||||||||||||
Research and development | 0.01 | 0.01 | 0.03 | 0.02 | |||||||||||
Selling, general and administrative | 0.06 | 0.04 | 0.14 | 0.10 | |||||||||||
Amortization expense | 0.12 | 0.21 | 0.50 | 0.63 | |||||||||||
Transaction costs recorded in selling, general and administrative | — | — | 0.01 | — | |||||||||||
Separation and other related costs recorded in selling, general and administrative (1) | 0.01 | 0.02 | 0.04 | 0.09 | |||||||||||
Total operating expenses adjustments | 0.20 | 0.28 | 0.72 | 0.84 | |||||||||||
Other income and expense, net | — | — | — | — | |||||||||||
Loss on debt extinguishment | — | — | — | — | |||||||||||
Non-GAAP tax adjustment (2) | (0.10 | ) | (0.11 | ) | (0.17 | ) | (0.20 | ) | |||||||
Non-GAAP diluted earnings per share | $ | 0.27 | $ | 0.38 | $ | 0.80 | $ | 1.12 | |||||||
(1) Represents separation and related costs that were incurred subsequent to the separation on October 1, 2022, including expenses incurred on a transitional basis under a contract shared with Xperi Inc.
(2) The provision for income taxes is adjusted to reflect the net income tax effects of the various non-GAAP pretax adjustments.
ADEIA INC. GAAP NET INCOME TO ADJUSTED EBITDA RECONCILIATION (in thousands) (unaudited) | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, 2024 | September 30, 2023 | September 30, 2024 | September 30, 2023 | ||||||||||||
GAAP net income | $ | 19,314 | $ | 24,232 | $ | 28,595 | $ | 54,672 | |||||||
Adjustments to GAAP net income: | |||||||||||||||
Stock-based compensation expense: | |||||||||||||||
Research and development | 1,126 | 767 | 3,028 | 2,097 | |||||||||||
Selling, general and administrative | 6,293 | 4,107 | 16,128 | 10,973 | |||||||||||
Transaction costs recorded in selling, general and administrative | — | — | 1,255 | — | |||||||||||
Separation and other related costs recorded in selling, general and administrative (1) | 1,613 | 1,915 | 4,204 | 10,223 | |||||||||||
Severance and retention costs recorded in selling, general and administrative | — | — | — | 78 | |||||||||||
Amortization expense | 13,600 | 23,386 | 56,787 | 70,725 | |||||||||||
Depreciation expense | 526 | 385 | 1,536 | 1,151 | |||||||||||
Interest expense | 12,758 | 15,659 | 40,229 | 47,137 | |||||||||||
Other income and expense, net | (1,431 | ) | (1,486 | ) | (4,259 | ) | (4,723 | ) | |||||||
Loss on debt extinguishment | — | — | 453 | — | |||||||||||
Provision for (benefit from) income taxes | (2,520 | ) | 1,712 | 6,109 | 15,877 | ||||||||||
Adjusted EBITDA | $ | 51,279 | $ | 70,677 | $ | 154,065 | $ | 208,210 | |||||||
(1) Represents separation and related costs that were incurred subsequent to the separation on October 1, 2022, including expenses incurred on a transitional basis under a contract shared with Xperi Inc.
ADEIA INC. RECONCILIATION FOR GUIDANCE ON OPERATING EXPENSES (in millions) (unaudited) | |||||
Year Ended | |||||
December 31, 2024 | |||||
Low | High | ||||
GAAP operating expenses | $ | 246.0 | $ | 254.0 | |
Amortization expense | 71.0 | 71.0 | |||
Stock-based compensation expense | 25.0 | 27.0 | |||
Separation and related costs (1) | 6.0 | 8.0 | |||
Total of non-GAAP adjustments | 102.0 | 106.0 | |||
Non-GAAP operating expenses | $ | 144.0 | $ | 148.0 | |
(1) Represents separation and related costs that were incurred subsequent to the separation on October 1, 2022, including expenses incurred on a transitional basis under a contract shared with Xperi Inc.
ADEIA INC. RECONCILIATION FOR GUIDANCE ON NET INCOME (in millions) (unaudited) | |||||||
Year Ended | |||||||
December 31, 2024 | |||||||
Low | High | ||||||
GAAP net income | $ | 65.9 | $ | 69.3 | |||
Amortization expense | 71.0 | 71.0 | |||||
Stock-based compensation expense | 25.0 | 27.0 | |||||
Separation and related costs (1) | 6.0 | 8.0 | |||||
Total of non-GAAP operating expenses | 102.0 | 106.0 | |||||
Non-GAAP tax adjustment (2) | (29.7 | ) | (17.4 | ) | |||
Non-GAAP net income | $ | 138.2 | $ | 157.9 | |||
(1) Represents separation and related costs that were incurred subsequent to the separation on October 1, 2022, including expenses incurred on a transitional basis under a contract shared with Xperi Inc.
(2) The provision for income taxes is adjusted to reflect the net income tax effects of the various non-GAAP pretax adjustments.
ADEIA INC. RECONCILIATION FOR GUIDANCE ON ADJUSTED EBITDA (in millions) (unaudited) | |||||||
Year Ended | |||||||
December 31, 2024 | |||||||
Low | High | ||||||
GAAP net income | $ | 65.9 | $ | 69.3 | |||
Stock-based compensation expense | 25.0 | 27.0 | |||||
Separation and related costs (1) | 6.0 | 8.0 | |||||
Amortization expense | 71.0 | 71.0 | |||||
Depreciation expense | 2.0 | 2.0 | |||||
Interest expense | 52.0 | 53.0 | |||||
Other income | (5.5 | ) | (6.0 | ) | |||
Income tax expense | 11.6 | 29.7 | |||||
Total of non-GAAP adjustments | 162.1 | 184.7 | |||||
Adjusted EBITDA | $ | 228.0 | $ | 254.0 | |||
(1) Represents separation and related costs that were incurred subsequent to the separation on October 1, 2022, including expenses incurred on a transitional basis under a contract shared with Xperi Inc.
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